Last Will and Testament Articles >> How to Terminate a Living Trust

How to Terminate a Living Trust

Termination of a living trust is straightforward should your situation change over time. A living trust is considered terminated when all assets of the trust are removed.

This means:

• You can terminate a living trust by simply removing all property from the trust and closing any accounts opened as part of the trust.

• A living trust is terminated when all property is distributed to your beneficiaries following your death.

• If your living trust had a federal or state identification number, which is unusual, you would remove all property from the trust and note on that year’s tax returns that the trust the year was the final one for the trust.

Rather than terminating a living trust, consider making adjustments or changes to the trust to avoid losing the advantage of a living trust. You are able to make changes to a living trust at any time until your death. In fact, you should periodically be updating your trust to include new property over time. Start your own living trust today to be sure you’re taking advantage of all the living trust advantages available.